According to Texas Finance Code § 343.104, “[a] lender may not offer any individual or group credit life, disability, or unemployment insurance on a prepaid single premium basis in conjunction with a home loan unless the following notice is provided…”
The notice in question is our Texas Insurance Notice to Applicant (Cx3715). To more closely comply with the requirements, we are making some configuration adjustments to trigger Cx3715 based on a “prepaid single premium basis” as provided in Ibid. § 343.104. The configuration for Cx3715 is being updated to trigger for Texas Initial disclosures when “Upfront Credit Insurance” (FI 99934) = Yes and any of the following options for “Credit Life, Accident and Health and Unemployment Insurance” (FI 40265) are selected:
• Accident and Health
• Accident and Health and Unemployment Insurance
• Credit Life
• Credit Life and Accident and Health
• Credit Life and Unemployment Insurance
• Credit Life, Accident and Health, and Unemployment Insurance
• Unemployment Insurance
Additionally, Cx3715 is being changed to print on letter-size paper by default instead of legal-size paper.
These changes will be in effect on October 12, 2019. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.